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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Alex who wrote (52696)	5/14/2000 8:25:00 AM
From: Ken Benes	Read Replies (3) \| Respond to of 116756

Alex: Investors in gold have little interest in eps, etc. They want leverage to a rising pog. If the price of gold is range bound, gold equities are not going to attract dollars. The banter of lower costs of production, higher cash flows is tantamount to relegating gold to the status of a cyclical and unfortunately cyclicals trade at very low pe's. Someone interested in those fundamentals will look elsewhere to invest their dollars. Even at this time, with a bear market looming, investors prefer the opportunities in technology than the unexciting returns available to gold investors. The price of gold is under 300.00 because the cb's want it there, the hedged producers want it there, and the market wants it there. Consequently, gold is and will continue to be a very poor investment as long as the producers masquerade themselves as fundamentalists and continue to be part of a group whose actions insure that the oversupply of gold will be with us for awhile. Ken

To: Alex who wrote (52696)	5/14/2000 12:17:00 PM
From: goldsheet	Read Replies (3) \| Respond to of 116756

> I own Eldorado Gold, a junior, which has shown five consecutive quarters of profit and good cash flow and is trading at a p/e of just over seven Agreed, there are lots of firms that look really good on paper. It is all a matter of perception and at the moment gold shares are not getting any visibility in the market. The few that can will be the 10 or so big firms that can mine over 2 million ounces. Even 1 million ounces doesn't do it anymore (one of my new realities of the gold market) > What's even odder is that this constant harping about gold oversupply, in the face of what's going on with M3, is happening on this thread Sorry about that, but I can see a direct relationship between primary mine production and gold prices. I think M3 is indirectly related. Just because there is a lots of fiat dollars out there doesn't mean that folks will go to the gold. Both (dollars and gold) get treated like commodities/currencies and the market prices them. Yes, it seems that there are too many dollars priced too high AND a fixed amount of gold priced too low. Unfortunately, neither you or I can talk gold up in this market, it is going to take a big change by big players.